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During a week where the Android Market lost some attention to the launch of Amazon’s Appstore, Google announced it will introduce an official in-app billing platform for its Android operating system next week. However, the billing platform is ready for testing now, in advance of the public launch.

Google’s Eric Chu said on the Android Developer blog that the system will allow Android developers to sell items within their apps. Mobile users can then purchase the items using Google Checkout. The items include virtual goods in games, as well as digital content, including upgrades, subscriptions, chapters, and episodes.

Developers are able to upload their apps for testing at this point, but they won’t be able to publish them until next week. Developers can start end-to-end testing using in-app billing, and can now create a catalog of in-app products. They can also set pricing, and then test buying the items using in-app purchases and test accounts. This may sound like a lot, but Google has published thorough guides that explain how to administer in-app billing, provide refunds, set up test accounts, and test the system.

Google says the new service only works on Android version 1.6 and higher, and it requires developers to have a Google Checkout Merchant account. It’s also only available for apps published in the Android Market, so Android apps from the Amazon Appstore are out of luck. Google makes sure to stress that it can only be used to sell digital content, not physical goods.

This service could be a good way for developers to make more money on their apps. Previously, the only way to make a profit was from selling the app itself. Developers could even offer the app for free or at a discounted rate now if the goods offered in the app are worthy of buying.

Apps that are strictly on the iOS platform are probably overjoyed and gearing up to make the jump over to Android now that they’ll be able to sell items within the app. Social games use the model frequently, and often monetize through selling virtual goods. Many start as free apps, and then hook the player into buying additional levels.

AllThingsD said successful companies like Disney-owned Tapulous have said Android’s lack of in-app payments is a reason why they haven’t launched on the platform. One of the apps expected to arrive next week is Tapulous’ popular Tap Tap Revenge 4, which has gained 10 million downloads from the Apple App Store, and will surely make a good profit from its sales in the Android Market.

The exact date of the official release is still to be determined, but AllThingsD said it might be Tuesday.